Income tax rates:
- $1-$2,000: 1% = $20 @top limit
- $2,001-$4,000: 2% = $40 @top limit
- $4,001-$6,000: 3% = $60 @top limit
- $6,001-$8,000: 4% = $80 @top limit
- $8,001-$10,000: 5% = $100 @top limit (Person making $10,000 pays $300 or 3.0%)
- $10,001-$25,000: 7.5% = $1,125 @top limit (Person making $25,000 pays $1,425 or 5.7%)
- $25,001-$50,000: 10% = $2,500 @top limit (Person making $50,000 pays $3,925 or 7.85%)
- $50,001-$100,000: 15% = $7,500 @top limit (Person making $100,000 pays $11,425 or 11.425%)
- $100,001-$250,000: 20% = $30,000 @top limit (Person making $250,000 pays $41,425 or 16.57%)
- Greater than $250,000: 25% = $187,500 @top limit (Person making $1,000,000 pays $228,925 or 22.8925%)
Capital gains tax rates:
Capital gain tax is taxes paid on money that has already been taxed once through income taxes. Therefore, capital gains taxes are a double tax if the capital gain is the first time the invested money earns a capital gain and a triple tax if the capital gain is the second time the invested money earns a capital gain, etc. For example, let’s say that an investor earned $250,000 from income and salary. After paying income taxes, this investor is left with $220,000. This investor then decides to invest $20,000 for one year and ends up making $10,000. If the capital gains tax is 10% then the investor pays $1,000 in capital gains taxes on top of having to pay $30,000 in income taxes. This may appear fair, if one does not consider the fact that the invested capital was already taxed at the income tax level, but because the invested capital was already taxed once through income taxes, the capital gain is a second tax. Therefore, if it is unfair then it is unfair to the person paying the capital gain tax, not to the poor. Also, if the poor invested capital then they would be subject to the same capital gain tax rates as the rich, so there’s nothing unfair about it.
By the way, the reason for the growing wealth gap is that the rich have the means to invest money while the poor don’t. Therefore, even in a well functioning economy, the wealth gap cannot be reduced without dire consequences to the economic well-being of everyone. Therefore, the growing wealth gap is not in and of itself an indication of the health of the economy. If the wealth gap is to be used as a measure or indicator of the health of the economy then the pace at which the wealth gap is growing may be a better indication as to the overall health of the economy rather than the growth in the wealth gap itself. However, such a measure must be accompanied by two (2) other measures: 1) The pace at which middle-class income is growing; and 2) the pace at which the top-1% wealth is growing. For example, if the pace of the wealth gap is shrinking, but middle-class income is stagnating and the reason for the reduction in the pace of the wealth gap growth is due to declining wealth gain of the rich then this would indicate a fundamental economic problem, not a healthy economy. On the other hand, if the pace of the wealth gap is shrinking due to accelerating growth in middle-class income, while the pace of wealth gain for the rich is holding steady then this would be an indication of a very healthy economy. Moving on.
- Capital gains tax on capital invested for 364 (365 during leap years) days or less: 50%
- Capital gains tax on capital invested for 365 to 1,095 (1,096 including a leap year) days: Personal overall income tax rate
- Capital gains tax on capital invested for 1,096 (1,097 including a leap year): 0%
A stool with 4 legs becomes unstable with one leg missing and becomes impossible to function as a stool with two of the four legs missing. Similarly, for the economy to work well, it needs all of the proper policies, regulations, and legislation to be in place. If any one of the major pieces are missing then none of the other policies will matter. We see this in the 1980s during the Reagan administration. Cutting taxes was the right move, but the President and Congress failed to balance the budget by cutting enough spending. Therefore, in the long-run, this rendered the tax cuts moot. Liberals/progressives/socialists (libs/progs/socs) have cited this period as the reason for why supply-side economics doesn’t work, but this is a gross distortion of the truth. Libs/progs/socs pretend that supply-side economics doesn’t work so they may further their agenda, while simultaneously using the 1980s as a so called “example of the failure of supply-side economics” and use it to bash and quiet advocates of supply-side economics. It is a very clever plan, but once light is shone on the facts, reality doesn’t support the libs/progs/socs agenda.
Here is a list of things that need to happen along with the income tax and capital tax plan set forth above:
- Eliminate all social programs and convert them into privately-run charities that they are. Institutions that would be subject to this metamorphosis would include Medicare, Medicaid, food stamp program, earned income tax credits, welfare, job training, unemployment, etc.
- Social security shall be eliminated and all paid-in capital shall be returned except for those that are already on social security and within 10 years of receiving social security.
- Everyone will be required to save at least 5% of their pretax income into a retirement account controlled by the individual. Everyone will have the option to save up to 10% of their pretax income into a retirement savings account controlled by the individual.
- Business regulations, policies, and legislation will be streamlined, simplified, and reduced to its absolute minimum focusing on the fairness of competition.
- Minimum wage levels will be eliminated.
- Corporate taxes will be eliminated. However, if deemed necessary it shall be based on a percentage of revenue. Alternatively, it shall be structured in a way to ensure it stimulates innovation, creation, and productive R&D, and accelerates job growth.
- All personal income tax deductions will be eliminated and every earner will file their individual income taxes. The income tax form shall be one page with no more than 2-5 pages of tables and explanations on how to file income taxes.
- Obama Care will be eliminated. And, a Constitutional amendment shall be passed that will NEVER again allow for federally- or state-mandated health insurance programs or medical subsidies or any other subsidies, social programs, welfare, or other forms of charitable contributions, regardless of what politicians and Congress name these programs.
- To reinforce the previous point: Constitutional amendment will be passed that will no longer allow subsidies of one group of people by another no matter the circumstances.
- Balance budget amendment to the US Constitution shall be introduced and passed.
- A TEMPORARY federal sales tax shall be applied to all retail merchandise sold inside the US or delivered to a US address that would reduce the federal deficit to one-third of the US GDP.
- The federal budget shall consist of just three items: 1) Defense, 2) Infrastructure, and 3) Education. The federal government shall live within the means of the income taxes it collects and members of the Congress and the President will be subject to mandatory jail sentences and expulsion from their government posts should they violate the balanced budget amendment of the US Constitution.
- If the federal government finds itself in a surplus situation then all of the surplus will first go towards reducing the federal deficit then towards a “rainy-day” fund.
- The federal government will be allowed to spend money on a TEMPORARY BASIS to rectify systemic issues in the economy and will be TEMPORARILY allowed to spend more than it collects through income taxes for this purpose. For this purpose, money will first be drawn from the “rainy-day” fund then borrowed. The repayment of this TEMPORARY deficit spending shall first be drawn by taxing the salary, income and capital gain of the President members of Congress and their staff by an additional 10%-20% (President and members of Congress have their tax rate increased by 20% on all of their salary, income, fees, revenue, dividend, interest, and capital gains, and their staff pay an extra 10%) then from a TEMPORARY increase in the federal retail sales tax rate.
- Systemic problems in the economy must be identified by the federal reserve, supported by a minimum drop of (100/3)% of all the major stock indexes (currently, the Dow Jones Industrial Average, S&P 500 and the NASDAQ Composite) and must be preceded by at least two quarters of negative GDP growth.
Most people reading this post would say that I’m crazy, nuts, demented, uneducated, ignorant, unjust, greedy, the list goes on. However, this is because most don’t have the education or ability to think to understand why it is that what I’m saying is the solution, and because most have also been brainwashed into thinking that forced transfer of wealth or redistribution of wealth is a good and moral thing. It isn’t!
It doesn’t matter whether someone can afford it or not because not only is the standard of affordability greatly subjective, but also, if it were to be used as the measure of all human interactions, it would lead to some bizarre outcomes. For example, one could argue that Tiger Woods should not be allowed to compete in any more majors and, if he does, he shouldn’t be allowed to win because he can afford not to win any more majors. Another example: Since the vast majority of us have two healthy kidneys, there should be no problem in passing a law that would force a healthy person to give up a kidney to someone that needs one because the healthy person can afford it. Another example, the New York Yankees should not be allowed to win any more World Series since they already have 28, by far the most in the Major Leagues, and they can afford not to win another World Series. Another example: All healthy woman should be subject to giving up some of her eggs to some one that doesn’t have the ability to produce her own child, since the healthy woman can afford to lose some of her eggs.
Think about how fucked-up affordability is as a standard of human interaction. Therefore, what I’m proposing is that we take away this nonsense regarding what is and isn’t affordable, and replace it with that which is Just and unjust. Regardless of the amount, stealing is stealing. If one takes away the productive fruits of another by force that is stealing. It doesn’t matter how it came about, stealing is stealing is stealing.
Those of you that think that jast because we voted on something or passed laws to effectuate something makes that law moral or Just, think again. If you believe that then much of what the Nazis did in Germany should not be looked on as being immoral. Much of what they did, they did through passage of legislation or by instituting laws. Also, if you believe that laws or the passage of laws through a direct or indirect democratic vote makes something moral or Just then think about this: If we were to legally and, through the democratic voting process, appeal the 13th Amendment prohibiting slavery would you think that slavery was moral or Just?! What sane person would? Yet, most people advocate for the continued forced redistribution of wealth because it’s the law or that we voted on it through the election of our legislators and president.
This is why I say that the vast majority of Americans, even the most well-educated, are incapable of really, truly thinking. And, this is a massive problem, not jast for the US, but for the entire world.
I understand the good intention behind why people want to force the wealthy to “share,” but this cannot, should not, and must not be allowed to be achieved by force. If those that truly believe in charity want to help the poor by lobbying the rich to donate to charitable causes for the poor then by all means do so. And, those wealthy people that have the means to donate to charity and are willing to do, again, by all means, have at it. However, don’t force it on all of the wealthy through the so called, “progressive tax” system. This is not only unjust, but also, it is a violation of the right to one’s property, and a civil rights violation in the sense that the rich are forced to work for the poor, i.e., a form of slavery or indentured servitude. And, we know that this is not permitted under the Constitution.
For the sake of the country’s future, for the sake of the poor more than anyone else, and for the sake of our children, grandchildren and all of our future progeny, it is long passed time to end this injustice and the perpetuation of misery. Institute a fair tax program for everyone, make everyone accountable for themselves and only themselves, and for goodness sake let’s make our future great again!
For more, please read my books, “… Under the Constitution with Liberty and Justice for ALL,” available at http://www.CreateSpace.com/3978962 and also available on Kindle, and “The New Constitution for Modern America,” available at http://www.CreateSpace.com/4281897 and also available on Kindle. Please don’t forget to rate this post. Any comments or questions are welcome and can be left for me on this blog, @Ahmedinejahd on Twitter, on Facebook or via email at AlexAhmedinejahd@Yahoo.com. Thank you in advance for buying my books, and rating this post. And, thanks for visiting my blog; I hope you get an opportunity to read my other posts. Have a great day!